Kerala’s government has decided to scrap construction materials and plant parts that were once the state’s industry.
The government announced on Tuesday that it would reduce production from 60,000 tonnes per year to 45,000 tons and eliminate manufacturing and production activities.
The decision came after the government cut down production by 20,000 from last year, but will not come into effect until 2020.
The state’s cabinet, led by chief minister Pinarayi Vijayan, said the move would result in a reduction of 1,000 factories.
The move comes amid a worsening economy, which has slowed growth to 7.8 percent from 7.9 percent in the previous fiscal.
In addition, the state government is slashing the state excise duty on imported fertilisers from 15 percent to 5 percent.
The main beneficiaries of the decision will be fertilisers producers who have been hit by the lower prices.
In recent years, the government has cut its production of the fertiliser, while the state has reduced its use of imported fertiliser.
The Kerala government also plans to reduce the number of employees from 4,000 to 2,000 and the number from 10,000 workers to 5,000.